March - Queensland Building and Construction …...• On 3 March 2016, Townsville Regional Service...

02 QBCC Quarterly Report | March 2016

Foreword ........................................................................................ 03

Our Highlights ...............................................................................04

Delivery of Corporate Plan ......................................................... 05

Customer ..............................................................................................................05

Customer strategic success measures .................................................... 07

People ....................................................................................................................08

Business excellence .......................................................................................... 10

Delivery of Services ...................................................................... 12

March Quarter Industry Activity ................................................ 14

Licensing ............................................................................................................... 14

Insurance ................................................................................................................15

Building complaints and disputes .............................................................. 16

Breaches and offences .....................................................................................17

Adjudication registry ....................................................................................... 19

Plumbing ............................................................................................................... 19

Pool Safety .......................................................................................................... 20

Financial Management ................................................................. 21

Financial commentary ......................................................................................21

Income statement .............................................................................................22

Balance sheet ..................................................................................................... 23

Table of Contents

QBCC Quarterly Report | March 2016 03

ForewordThe Queensland Building and Construction Commission (QBCC) is a statutory body established under the Queensland Building and Construction Commission Act 1991, reporting to the Honourable Mick de Brenni MP, Minister for Housing and Public Works.

We play a central role in regulating the building industry in Queensland and are led by a Commissioner, governed by a board and comprised of a skilled and expert team of staff who work hard to meet the needs of industry participants and the community.

QBCC is integral to promoting confidence and reducing regulatory burden in the building and construction industry, an industry which is a key contributor to the Queensland economy. QBCC also contributes to the Queensland Government’s objectives for the community in the areas of delivering quality, frontline services and creating jobs and a diverse economy.

QBCC regulates by ensuring the maintenance of proper standards within the industry and achieving a reasonable balance between the interests of building contractors and consumers. QBCC supports the industry by providing remedies for defective building work and providing support, education and advice for consumers and those who undertake building work.

We proactively engage with contractors, homeowners, industry bodies, and all levels of government to identify issues and ultimately satisfy their needs and expectations. We do this by regularly meeting with reference group representatives such as the Industry Reference Group and the Consumer Reference Group.


Our Highlights

$1,387,265 RECOVERED TO CREDITORS from non-payment of debts investigations

92% OF EARLY DISPUTE RESOLUTION COMPLAINTS resolved within 28 working days

99% OF BCIPA APPLICATIONS were referred to an adjudicator within 4 working days

1,471 INTERVIEWS ACROSS 362 SITES conducted in relation to licensing audits

$9.2 MILLION in insurance claim payouts

108 NON-PAYMENT OF DEBTS INVESTIGATIONS resulted in 24 licence suspensions and 13 licence conditions

-$


Delivery of Corporate PlanCUSTOMERThis is a status report of key focus area achievements and strategic success measures, as defined in the 2015-2019 Corporate Plan for the Customer strategic pillar. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2015-2016.

ACHIEVEMENT OF STRATEGIC DIRECTION (JANUARY 2016 – MARCH 2016) Improve service quality

• The newest release of Service Delivery 15 (SD15) went live on 14 March 2016 after a staggered release beginning on 29 February 2016. QBCC’s Customer Feedback Framework, General Enquiries and ‘myQBCC’ portal were released on QBCC’s website on 14 March 2016. This enhances QBCC’s ability to capture customer interaction information and improve the digital services we offer to our customers.

Provide our customers with simpler and easier access to our frontline services and information

• Our ‘myQBCC’ portal assists customers by making their interactions with QBCC much smoother, with the ability to create and update their own profile and track their cases.

• A new web tool was released in January 2016 to offer customers a quick and easy way to find out whether building work is covered or not covered under QBCC’s Home Warranty Insurance Scheme. The tool lists out the type of work scenarios alphabetically and includes a handy search function to make navigation user friendly.

• QBCC Disputes Wizard, a new online guide was released to help customers understand what to do when lodging a complaint against a builder.

• QBCC had an information stand at the Brisbane Home Show from 10-13 March 2016. The stand generated a lot of interest and positive feedback from the community.

Communicate to create awareness of the Queensland Building and Construction Commission and its services

• QBCC officers attended the launch of the Workplace Health and Safety film ‘Jason’s Story’ on 3 February 2016. The focus of the launch was to improve the safety culture on building and construction sites, particularly with respect to young workers who require guidance and mentoring in this area.

• On 3 March 2016, Townsville Regional Service Centre staff participated in the launch of Suncorp’s Cyclone Resilience Benefit, which was part of the ‘Protecting the North’ initiative. This initiative was well received by the region as it enabled homeowners to report certain improvements made to their homes (to make them cyclone resilient, which will result in reduced home insurance premiums). It is predicted that the initiative will generate more building work and growth in the region. QBCC continues to maintain a strong association with the James Cook University Cyclone Testing Station located in Townsville.


Deliver reforms to provide a fairer and more equitable building and construction industry

• During the quarter QBCC played a supporting role to the Department of Housing and Public Works in consultation with the community regarding the release of its Security of Payment Discussion Paper. A series of road shows were held with interested or impacted parties encouraged to attend or to submit a response to the paper, to the Government by 31 March 2016.

• Licensing compliance audits were undertaken throughout South-east Queensland. The Gold Coast audit uncovered 26 people engaging in illegal building activity.

Reduced red tape and regulatory burden

• On 28 January 2016 various amendments to the Queensland Building and Construction Commission Regulation 2003 were made. The amendments included a qualification for adjudicators being prescribed under the Building and Construction Industry Payments Regulation 2004 and correction of section references under the State Penalties Enforcement Regulation 2014, enabling QBCC to issue infringement notices for the relevant offences.

• Other licensing amendments were also made on 29 January 2016, which commenced operation on 1 April 2016.

ACHIEVEMENT OF STRATEGIC DIRECTION (JANUARY 2016 – MARCH 2016) CONT



CUSTOMER STRATEGIC SUCCESS MEASURES

STRATEGIC SUCCESS MEASURES

2015-2016 Target

Quarter result (Jan-Mar)

Status

INDICATOR

Customer satisfaction 85% 70% ✕1

Achieve 100 per cent of all 24hr and 48hr service level agreements of responding to the customer and actioning their complaint

100% 97% ¢

Accreditation from Customer Service Industry Association of Australia (CSIA) 6.50 ––2 Refer to

note2

App engagement – time spent >2mins 1,146 Refer to note3

Annual growth in web traffic volumes (website sessions) 1.3M 610,475 P

Online payment transactions for renewals and insurance 35% 79.4% P

Customer recognition: Licensee brand awareness 50% 97% P

Customer recognition: Home owner brand awareness 15% 31% P

Social sentiment metric 40% 50% P

Year on year reduction in adjudication applications under the BCIP Act 2004, within procedural timeframes

10% ––4 Refer to note4

Parties to adjudication decisions expressing confidence in the BCIPA

75% 77.9% P5

Year on year reduction in the number of customer complaints against licensees 10% 13.9% P

Decreasing levels of unlicenced operators 3% 1.6% P

Licensee service satisfaction 85% 70.8% ✕6

Status is reported using the below key: P= target achieved or exceeded ¢= slightly outside target, risk being managed ✕ = target not reached (see note)

1. Negative homeowner feedback has been a significant contributor to this quarterly result. In March 2016, homeowners made up 16% of all responses who rated the QBCC at zero per cent. Homeowners traditionally provide a Customer Satisfaction (CSat) rating that is related to the decision / outcome, and not on the service experience they had with the QBCC overall. The QBCC continues to look at ways to inform and educate homeowners to assist in improving these results. QBCC licensees rated satisfaction at 71% for the same period, while the service experience delivered by QBCC Contact centre achieved 89%.

2. Result will be available annually in the final quarter.

3. This target information can no longer be obtained. QBCC will report on engagement through measurement of the number of sessions.

4. This process began 15 December 2014 and therefore a year on year measure will not be available until the fourth quarter.

5. Parties surveyed are Adjudication Claimants, the result does not include respondents as a party to an adjudication matter. Claimants are surveyed 3 months after the adjudication decision is released and therefore statistics are only available as at 30 November 2015. The response rate was 80.82%.

6. Negative licensee feedback was received from a number of business units based on unfavourable decisions in relation to the application or case matter.


PEOPLEThis is a status report of key focus area achievements and strategic success measures, as defined in the 2015-2019 Corporate Plan for the People strategic pillar. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2015-2016.

ACHIEVEMENT OF STRATEGIC DIRECTION (JANUARY 2016 – MARCH 2016) Provide quality leadership and culture that guides, rewards and develops the Queensland Building and Construction Commission’s workforce

• ‘7 Habits of Highly Effective People’ was attended by the QBCC Leadership Team in February and March 2016, and an Executive Induction was developed for the completion by all new and existing Executive Leaders.

• Recruitment process was finalised to recruit a new Commissioner to lead the QBCC.

• Weekly Commissioner’s Message is sent via email to all QBCC staff, with news and business updates and communicating customer praise received about services provided by individual staff members.

• Monthly meetings are held to recognise and congratulate QBCC staff for living the values, of Customer First, Fairness and Equity and being Accountable.

Make it simpler and easier for people to do their jobs

• The QBCC made its first disciplinary decisions using new powers under Part 6A of the Queensland Building and Construction Commission Act 1991 in March 2016. These powers allow business units across the organisation to take disciplinary action against licensees and non-licensees without the need to refer the matter to QCAT. In some cases, disciplinary action is an alternative to laying charges in a Magistrates Court.

• All business units commenced a review and update of procedure manuals.

• Effort continues to be focussed on the implementation of the new applications as a service delivery platform for the QBCC.

• Catch up training sessions were held by the Learning and Development team, focussing on the staff who missed the initial training sessions for the new customer relationship management system.

Empower people and equip them for success

• Annual Performance Plan Development process was completed for all employees, identifying the key goals and key performance indicators. This process also determined any further development opportunities required.

• The QBCC’s Manager Gold Coast Regional Service Centre presented certificates to the graduates of the Gold Coast chapter of the Master Builders Association Diploma of Building and Construction course on 29 January 2016.

• A team of Influencers nominated by their managers, actively participated in training and information sessions before the latest SD15 release in March 2016. This is a new methodology used by the change management team designed to empower the workforce and have the information and basic training passed onto the team by their peers rather than classroom training. Initial feedback regarding this process has been positive.



2015-2016 Target


Status

INDICATOR

Increased employee engagement 82% 64%1 ✕1

Increased employee discretionary effort 82% 78.5%2 ✕2

Low staff absenteeism rates (days/person) 7.5 6.9% ¢

Separation rate 9% 13.1% ¢

Reduction in operational cost to serve 2% -1.4%3 ✕3

Status is reported using the below key:

P= target achieved or exceeded ¢= slightly outside target, risk being managed ✕ = target not reached (see note)

1. The results reflect staff feedback when the survey was conducted that QBCC’s goals/direction were still being formulated and yet to be communicated. This is being managed with the recent development and communication to the workforce, of the Strategic Plan 2016-2020 which sets the strategic direction and the objectives of QBCC. This plan comes into effect from 1 July 2016 and is to be communicated to the workforce through operational planning activities conducted during April - June 2016.

2. This success measure is captured three times per year through the staff survey. The last survey was completed in March 2016. Workforce assessment strategies are planned to commence which will identify areas where capacity can be improved and allow more staff to contribute discretionary effort.

3. The measure compares the March quarter 2015 with the March quarter 2016. The 1.4% increase in total is due to unplanned costs paid in Jan – March 2015 and the actual direct salary cost increased by 9%.



BUSINESS EXCELLENCEThis is a status report of key focus area achievements and strategic success measures, as defined in the 2015-2019 Corporate Plan for the Business Excellence strategic pillar. The status is based on the delivery of projects and actions for each initiative being developed or implemented during 2015-2016.

ACHIEVEMENT OF STRATEGIC DIRECTION (JANUARY 2016 - MARCH 2016) Sustainable financial management

• Use of MuleSoft Anypoint Platform has decreased the complexity of connecting legacy information systems and applications to the new customer relationship management system. Mulesoft now allows data captured in online forms to be passed directly to the new customer relationship management system, a key capability in reducing processing overheads and assisting to streamline the entire workflow involved.

Supply chain management

• In March 2016, the Fleet Commissioner’s Directive was reviewed and re-published. This directive aims to provide guidance on the allocation of the fleet and its authorised use in conjunction with the Fleet Policy. These documents ensure that the QBCC and its staff are utilising these resources appropriately and fairly.

Innovation and best practice processes and systems

• The Queensland Parliament passed the Plumbing and Drainage and Other Legislation Amendment Bill 2015 on 24 March 2016 to establish a dedicated plumbing industry regulatory body, the Service Trades Council, within QBCC. The Council’s membership will include a range of expert industry and government representatives.

• Business Readiness Surveys were conducted across the business to assist the Program Management Office (PMO) in having the right mechanisms and resources in place to support staff through changes associated with SD15.




2015-2016 Target


Status

INDICATOR

Combined loss ratio of Queensland Home Warranty Scheme <98% 83% P1

Reduction in costs 5% 6.5% P

Increase in equity 2% -14.4% ✕2

Increase in revenue 3% -3.7% ✕3

Reduction in other operating costs 5% 3.4% ¢

Positive result at Queensland Public Sector Awards Finalist --4 Refer to note4

Positive result at Australian Teleservices Awards1 –– --5 Refer to note5

Innovated processes or systems identified for review and redesign for best practice

5 36 P6

Annual shift to digital channel 10% 74% P

Customers are able to transact 24x7x365 95% 98.8% P

Growth in SmartForm submissions 15% -15% ✕7



1. Based on data to 31 December 2015, the discounted combined loss ratio is forecast to be 83% on 30 June 2016. This figure will be reported again in August 2016 based on data to 30 June 2016.

2. Negative investment returns heavily impacted by the global economic and equity markets.

3. Revenue has been impacted by the negative investment returns.

4. The QBCC entered and achieved international accreditation within the CSIA (Customer Service Institute of Australia) in previous quarter.

5. This measure is taken biennially and will be reported on again in 2016-2017.

6. The delivery of Service Delivery 2015 project continued, with the release of the next phase including: General enquiries Customer Feedback Framework and myQBCC. While the performance was not met, the benefit to customers and the magnitude of the system improvements make up for perceived shortfall.

7. The reduction in transactions recorded was impacted by the staggered transitioning of the General Enquiries and Feedback Avoka forms into the new customer relationship management system


The table below outlines our performance against the service standards contained in the QBCC Charter for the period 1 January 2016 – 31 March 2016.

SERVICE AREA Quarter result (Jan-Mar)

Status

CUSTOMER CONTACT

Strive to ensure that over 80% of all calls to the 139 333 telephone number are answered within 60 seconds

70% ¢1

Return customer calls at a time of their convenience within 24 hours if the QBCC does not answer their call within 60 seconds and they leave a message

100% P

Respond to all email and web enquiries within 24 hours 98% ¢

LICENSING

Complete 80% of licence applications within 25 working days 66% ✕2

BREACHES AND OFFENCES

Contact 90% of customers within 2 working days of receipt of the complaint 82% ✕3

Assess and provide feedback to customers within 10 working days of receiving a complaint

74% ✕4

DEFECTIVE WORK

Contact customers within 2 working days of receipt of their complaint lodged during construction

70% ¢

Provide a resolution to 80% of complaints within 28 working days 92% P

Delivery of Services



1. Performance was slightly impacted during the implementation of the new General Enquiries system and staff offline training on the new system. In addition, each team member had 6 hours of training on customer feedback framework and general enquiries case creation.

2. The average days to process licence applications is 67% and this is caused by a number of factors, namely higher than forecast workloads fueled by a 7% increase in applications received and introduction of new customer cases.

3. This figure is the average for the last quarter and has dropped slightly due to leave taken by experienced staff, which is being managed by upskilling new and existing staff.

4. This measure was heavily impacted as staff continue to adapt to a new software platform introduced in October 2015. This system is currently used in conjunction with other legacy information systems which impact the output of the unit.


SERVICE AREAQuarter result

(Jan-Mar)Status

INSURANCE CLAIMS

Contact customers within 2 working days of receipt of their claim 2.9% ¢

Assess and provide a response to 60% of claims for assistance under the Home Warranty Scheme within 75 days after receipt of a completed claim for non-completion

84.4% ¢5

Assess and provide a response to 60% of claims for assistance under the Home Warranty Scheme within 59 days after receipt of a defective work claim

82.3% ✕6

Assess and provide a response to 60% of claims for assistance under the Home Warranty Scheme within 75 days after receipt of a completed claim for subsidence

--7 Refer to note7

INTERNAL REVIEW

Appoint a reviewer within 7 calendar days 0%8 ✕8

Provide review decisions within 28 calendar days 12%8 ✕8

ADJUDICATION

Appoint an adjudicator within 4 working days 99% P

Monitor adjudicator compliance to ensure that 90% of standard claim decisions are provided within 10 working days

95.1% P

Monitor adjudicator compliance to ensure that 90% of complex claim decisions are provided within 15 working days

100% P



5. The KPI was not met due to staff leave, high workloads and system inefficiencies. Steps have been implemented to address the identified issues.

6. This measure has been affected by the flow-on effect of delays outside the control of the QBCC. The average also increases in cases where further approvals are required e.g. variations to contracts.

7. This measure will be captured with the introduction of the new customer relationship management system to the Claims Management unit. This is anticipated to occur in October 2016.

8. During the March quarter the steadily-increasing demand by QBCC’s customers for the relatively-new Internal Review service, continued the trend of the previous quarter where the influx of new cases could not be serviced as quickly as originally forecast. Strategies to improve business performance include the recent addition of team resources and improving the process for appointment and allocation of internal review officers to cases, to enable cases to be assigned more efficiently.


March quarter industry activityLICENSING As at 31 March 2016, there were 86,234 QBCC licensees (not including occupational licensed Plumbers and Pool Safety Inspectors) with the majority of these individual licence holders. Individuals holding a trade contractor licence comprised almost half of all licence holders. This quarter sees 158 less licensees than the previous quarter.

There was a slight growth in applications for a QBCC licence during the quarter, with 2,241 applications received, equating to a 7% increase.

LICENSEES BY CATEGORY AS AT 31/03/2016 Individual Company

Builder 25,505 7,954

Builder restricted 2,806 750

Trade contractor 39,246 8,715

Fire occupational 1,258 -

Certifier 431 -

Total 69,246 17,419

LICENCES Jan-16 Feb-16 Mar-16

Applications received 620 796 825

Mutual recognition applications 56 84 50

Owner-builder permit applications 120 178 152


INSURANCE During the March quarter 2016, the QBCC processed 22,324 insurance policies and received more than $25 million in insurance premiums for policies raised in relation to new builds, alterations or additions.

The QBCC paid out a total of $9.2 million in insurance claim costs across 550 claims during the March quarter 2016. This included $4.4 million for non-completion claims, $2.9 million for defect claims and $1.9 million for subsidence claims.

INSURANCE SCHEME POLICIES Jan-16 Feb-16 Mar-16

Number of alterations/additions 3,677 5,882 5,283

Number of new builds 2,235 2,732 2,515

Value of alterations/additions $ 1,428,346 $ 2,225,270 $ 2,044,089

Value or new builds $ 5,829,404 $ 7,108,740 $ 6,409,028

INSURANCE CLAIMS Jan-16 Feb-16 Mar-16

Non-completion claims 47 49 42

Non-completion claim cost $ 1,575,119 $ 1,406,296 $ 1,457,656

Defect claims 74 87 72

Defect claim cost $ 1,096,694 $ 1,113,385 $ 676,935

Subsidence claims 57 64 56

Subsidence claim costs $ 554,099 $ 1,068,756 $ 317,029


BUILDING COMPLAINTS AND DISPUTESThere were 925 complaints received by the QBCC during the March quarter 2016. The volume of complaints has remained consistent with 948 complaints received in the previous quarter.

COMPLAINTS Jan-16 Feb-16 Mar-16

Complaints received 260 332 333

Directions issued 54 81 82

MOST COMMON DEFECTS (JUL-15 TO MAR-16) Total

Joinery 154

Painting 138

Wet areas - waterproofing membranes – Internal 99

Tiling floor 78

Drainage 64

Roof cladding 62

Tiling wall 46

Linings – ceiling – internal 46

Linings – wall – internal 46

Timber framing 41

Technical Standards Unit

QBCC has an established Technical Standards Unit (TSU) to audit the compliance of building works with the National Construction Code (NCC) and relevant Australian Standards. Where non-compliance is noted, builders are encouraged to rectify the defective work to avoid further action by QBCC.

The TSU conducted inspections on 311 building sites comprising a total of 1,422 residential living units during January to March 2016.

Two regional audit operations were conducted focussing on work under construction, in the Rockhampton regional area as well as the Wide Bay regional area during the quarter. These regional audits discovered a wide spread usage of non-compliant methodology for supporting the tops of internal walls of dwellings. The methodology is not supported by any manufacturers test data or included as a ‘Deemed to Satisfy’ solution under the Building Code of Australia, or relevant Australian Standards.

The TSU is now developing a strategy to inform the industry in Central Queensland of the unsuitability of this observed practice.


BREACHES AND OFFENCES

The Industry Intelligence Unit triages all complaint types received by the QBCC.

COMPLIANCE ACTIVITY Jan-16 Feb-16 Mar-16

Caution issued (suspected breach) 4 1 2

Warning issued (identified breach) 8 15 14

Referred to specialist unit for further investigation 37 60 58

The Minimum Financial Requirements (MFR) policy commenced on 1 October 2014 following the repeal of the Financial Requirements for Licensing (FRL) policy. The MFR policy has reduced regulatory burden and costs by removing the need for licensees to provide financial information at renewal time. The QBCC is also able to move quickly and decisively to deal with issues of non-payment with the requirement for licensees to pay all debts within agreed trading terms or risk losing their licence. The MFR policy has therefore resulted in a shift in the compliance activities of the QBCC.

During the March quarter 2016, QBCC undertook 108 non-payment of debts investigations resulting in the suspension of 24 licences and the cancellation of 13 licences. QBCC’s ongoing success in getting debts paid continues to draw positive industry feedback with $1,387,265 recovered to creditors this quarter.

There were 20 companies and 31 individuals excluded from holding a QBCC contractor or nominee-supervisor licence for five years due to their involvement in a financial failure. Permanent exclusion was imposed on individuals for their involvement in a second financial failure.

FINANCIAL INVESTIGATIONS - PAYMENT OF DEBTS Jan-16 to Mar-16

Non-payment of debts (MFR) investigations 108

Suspension – non-payment of debts 24

Cancellation – non-payment of debts 13

FINANCIAL INVESTIGATIONS - AUDITS Jan-16 to Mar-16

Financial audits 133

Suspension - non-compliance with audit 17

Suspension - not meeting MFR 9

Cancellation - non-compliance with audit 9

Cancellation - not meeting MFR 10

EXCLUSIONS Jan-16 to Mar-16

Company licences cancelled due to exclusion 20

Individual's licences cancelled due to exclusion 31

Permanent exclusions 6

The QBCC have issued a total of 147 infringement notices to 136 participants for all offences. The most common offences are failure to rectify defective work (62 infringements issued), unlicensed contracting (18 infringements issued), failure to pay an insurance premium (17 infringements issued), advertising offences (12 infringements issued) and improper use of a licence offences.


AUDITS AND INVESTIGATIONS Jan-16 to Mar-16

ACTIVITY Domestic contracts

Commercial contracts

Audits 1 1

Investigations 81 9

Warnings issued 1 0

Infringement notices issued 26 0

DEMERIT POINTS ISSUED Jan-16 to Mar-16

Contractual offences 22

Failure to rectify 546

Failure to pay premium 42

Carry out work without nominee 0

Other 36

The QBCC undertakes proactive audits to detect unlicensed contractors unlawfully performing building work.

LICENSING AUDITS Jan-16 to Mar-16

Sites visited 362

Interviews conducted 1,471

Suspected unlicensed contractors 29

During the March quarter 2016, there were 67 complaint and audit cases closed. The table shows instances where an unsatisfactory finding was determined.

CERTIFIER COMPLIANCE Jan-16 to Mar-16

Reprimands issued 11

Direction – enforcement action and ensure certification 1

Licence condition imposed 0

No further action 0


ADJUDICATION REGISTRYDuring the March quarter 2016, the average time taken to decide a standard claim was 18 business days and 57 business days for complex claims. The lowest value claim lodged for this quarter was $281 and the largest $13,459,441. The average value of fees for this quarter was $5,930 and the minimum fee for this quarter valued at $174.

STATUS OF APPLICATIONS Jan-16 Feb-16 Mar-16

Adjudication applications lodged 46 67 58

Adjudication applications withdrawn 32 22 31

Decisions released 14 31 25

VALUE OF APPLICATIONS Jan-16 Feb-16 Mar-16

Claimed amounts $ 12,504,365 $ 19,252,065 $ 21,670,755

Decision released - claimed amounts $ 20,835,356 $ 7,458,116 $ 1,611,392

Decision released - adjudicated amounts $ 14,453,479 $ 2,665,063 $ 664,890

Decision released - fees $ 185,753 $ 226,689 $ 67,918

Further details regarding adjudication decisions are located on the QBCC website.

PLUMBINGThere were 16,414 licensees holding open, provisional or restricted plumber and drainer licensees in Queensland as at 31 March 2016.

During the March quarter 36 investigations were closed with the following outcomes

INVESTIGATION OUTCOMES Jan-16 to Mar-16

Penalty applied 8

Disciplinary action taken 6

Negotiated outcome 0

Referred 4

Works rectified 0

No evidence to proceed 5

Other 13

Total 36


The 2016 notifiable works audit program for January to March 2016 were:

TYPE OF NOTIFIABLE WORK AUDIT Jan-16 to Mar-16

Audits of companies performing hot water system installations and replacements

100

Audits of real estate agents 12

Audits resulting from investigations 45

Type of Notifiable Work Audit 157

POOL SAFETYPool safety laws were introduced in Queensland on 1 December 2010 to help reduce immersion incidents of children in swimming pools. All pools including existing pools must have a barrier compliant with the pool safety standard.

ENQUIRIES - POOL SAFETY Jan-16 Feb-16 Mar-16

Average number of enquiries per week 69 69 96

During the March quarter 2016, the following pool safety inspector licensing activities were recorded:

• New licence applications received – 78• Licence renewals – 155• Total number of licences – 778.


Financial managementFINANCIAL COMMENTARY QBCC’s financial year to date operating result is currently below forecast budget, primarily due to negative investment returns which have been heavily impacted by the global economic and equity markets. The number of insurance policies issued is below the forecast budget which has reduced the premium revenue and the outward reinsurance expense. The claims approved for the year are larger than the original budget due to increased number of non-completion claims. QBCC has increased its liability for unearned income due to the introduction of multi-year renewals. This combined with the negative investment returns has resulted in a decrease in the equity position for the financial year to date.



YTD Q3 FULL YEAR

Actual $’000

Budget $’000

Variance $’000

Original budget$’000

INCOME FROM CONTINUING OPERATIONS

Licence revenue 23 484 25 570 (2 086) 33 158

Premium revenue 56 245 64 423 (8 178) 91 145

Reinsurance and other recoveries revenue 54 140 53 189 950 72 099

Administration fees revenue 13 711 14 951 (1 240) 21 223

Investment revenue (212) 10 061 (10 272) 13 535

Other revenue 5 319 3 831 1 488 5 008

Total revenue 152 687 172 025 (19 338) 236 168

Gain/(Loss) on disposal of assets 1 14 (13) 15

Total Income from Continuing Operations 103 159 114 529 (11 370) 236 183

EXPENSES FROM CONTINUING OPERATIONS

Outward reinsurance 40 525 48 804 8 279 69 147

Claims approved and charged 39 776 36 257 (3 519) 50 028

Employee expenses 30 924 32 785 1 861 44 526

Supplies and services 24 119 23 525 (594) 30 285

Depreciation and amortisation 1 736 2 330 595 3 098

Impairment losses 23 753 27 949 4 196 37 265

Other expenses 397 494 96 736

Total Expenses from Continuing Operations 161 230 172 143 10 914 235 085

Operating Result for the Year (8 542) (104) (8 437) 1 098

INCOME STATEMENT (UNAUDITED)


YTD Q3 FULL YEAR

Actual $’000

Budget $’000

Original budget$’000

CURRENT ASSETS

Cash and cash equivalents 10 916 5 305 5 305

Receivables 27 029 24 079 24 602

Reinsurance receivables 25 675 25 675 27 675

Other financial assets 212 108 190 701 197 888

Other current assets 25 188 31 985 35 641

Total Current Assets 300 916 277 746 291 111

NON-CURRENT ASSETS

Reinsurance receivables 84 853 84 853 84 587

Leasehold restoration paid in advance 84 84 66

Intangible assets 7 399 6 715 6 314

Property, plant and equipment 4 284 5 822 5 556

Total Non-Current Assets 96 621 97 474 96 523

Total Assets 397 537 375 220 387 634

CURRENT LIABILITIES

Payables 40 367 33 154 34 504

Accrued employee benefits 4 280 4 004 5 041

Provisions 181 78 286

Unearned revenue 79 093 56 230 61 759

Future claims and associated costs 48 055 48 055 48 055

Total Current Liabilities 171 976 141 521 149 646

NON-CURRENT LIABILITIES

Accrued employee benefits 4 822 4 420 4 629

Provisions 915 1 018 732

Future claims and associated costs 169 216 169 216 172 379

Total Non-Current Liabilities 174 952 174 653 177 739

TOTAL LIABILITIES 346 928 316 174 327 385

NET ASSETS 50 609 59 046 60 249

EQUITY

Accumulated surplus 50 609 59 046 60 249

TOTAL EQUITY 50 609 59 046 60 249

BALANCE SHEET (UNAUDITED)

299 Montague Road, West End QLD 4101

GPO Box 5099, Brisbane QLD 4001

T: 139 333 F: 07 3225 2999

W: qbcc.qld.gov.au

Need more information?

Visit qbcc.qld.gov.au or call us on 139 333.

March - Queensland Building and Construction …...• On 3 March 2016, Townsville Regional Service...

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